AURIFEROUS START FOR ASSET MANAGER

AURIFEROUS START FOR ASSET MANAGER

AN asset management company has tapped what it believes to be Australasia’s first fully allocated gold backed exchange-traded fund.

The Australian Midas Fund, which forecasts to have $450 million under management in its first year, will be managed by the Midas Management Group to provide an investment alternative for investors interested in holding physical gold bullion.

Chairman Anthony Fitzgerald says 97 per cent of the company’s net asset value will be held in bullion bars, owned by investors but stored offshore in the custody of an independent Swiss asset management group.

“Managed by Midas Management Group, The Australian Midas Fund will pioneer the Australian financial market with a product that not only offers the traditional hedging characteristics of gold but also additional protection against inflation, deflation and other manipulations associated with paper currencies and importantly the security of having the unique ability to redeem in physical gold bullion,” says Fitzgerald.

“By establishing a legitimate fund that actually holds gold bullion, rather than paper based transactions, our fund will capture a large percentage of a market that is seeking safe and solid returns and in turn is set to revolutionise the Australasian ETF industry.

“The Australian Midas Fund will be selling 12 million transferable, redeemable preference shares in its initial offering, with subsequent offerings to Asia, Europe and America following shortly after.”

The price of gold has increased from US$255 in 2001 to around US$1330 an ounce.

Help us deliver quality journalism to you.
As a free and independent news site providing daily updates
during a period of unprecedented challenges for businesses everywhere
we call on your support

Trade like a pro with eToro’s CopyTrader
Partner Content
Whether you’re a beginner learning the basics or simply too busy to monitor the m...
Etoro
Advertisement

Related Stories

Vaxxas receives $34m capital injection to advance manufacturing of needle-free vaccine

Vaxxas receives $34m capital injection to advance manufacturing of needle-free vaccine

Brisbane-based medtech Vaxxas has today announced the completion of...

Inflation set to drive pre-Christmas retail sales even higher to a record $66b

Inflation set to drive pre-Christmas retail sales even higher to a record $66b

Inflationary pressures are set to lift retail spending in the festi...

HESTA completes merger with Mercy Super

HESTA completes merger with Mercy Super

Health and community services super fund HESTA has seen its total f...

QLD government seals $280m partnership to establish mRNA vaccine research hub

QLD government seals $280m partnership to establish mRNA vaccine research hub

The Queensland Government, one of the world's largest vaccine i...